Elizabeth Holmes faced legal challenges and restrictions on holding roles in public companies after Theranos' downfall.
Venture capitalist Tim Draper defended Holmes, praising her impact on healthcare and endorsing Theranos' technology.
Deep dives
The Beginning of the Downfall
In May 2016, Theranos faced challenges as its President and COO, Sunny Balwani, departed. Elizabeth Holmes, the founder, attributed their split to a mutually agreed separation due to the intense working relationship. Concurrently, doubts about Theranos' technology surfaced, triggering mainstream skepticism and questions regarding its efficacy in revolutionizing healthcare.
Defiant Defense Despite Doubts
Despite mounting skepticism, venture capitalist Tim Draper staunchly defended Elizabeth Holmes, praising her impact on healthcare. Draper endorsed Theranos' technology, emphasizing its ability to revolutionize the industry with just two drops of blood. He highlighted the competitive threat Elizabeth posed to established healthcare players and expressed confidence in the company's future success.
Legal and Regulatory Scrutiny
Theranos faced legal and regulatory challenges as its contract with Walgreens was terminated, leading to lawsuits and the voiding of tens of thousands of test results. The company's quality controls were deemed deficient, posing significant risks to patient health. Despite intense scrutiny, Theranos managed to remain operational, facing investigations and lawsuits.
Crisis Unfolds and Legal Ramifications
Theranos and its leadership, including Elizabeth Holmes and Sunny Balwani, were charged with a massive fraud scheme by the SEC, leading to their legal battles. Holmes settled, relinquishing control and facing restrictions on holding certain roles in public companies, while Balwani proclaimed innocence and vowed to contest the charges. The eventual dissolution of Theranos marked the end of a turbulent chapter in its history.
Elizabeth Holmes, once the darling of Silicon Valley, is under a different kind of spotlight. Now under investigation by the Securities and Exchange Commission, she is forced to answer tough questions under oath. The claims that Elizabeth had been repeating over and over again to the public, investors, doctors and her board are under fire; the woman who once had all the answers, suddenly seems to have none. And for the first time, the lawyer for former Theranos COO, Sunny Balwani, speaks out, providing a glimpse into his defense.
